UK Dividend Tax Calculator (2026/27).

Dividends above the £500 dividend allowance are taxed at 8.75% within the basic-rate band, 33.75% in the higher-rate band and 39.35% in the additional-rate band. These rates have been unchanged since 6 April 2022.

The £12,570 personal allowance is used first against your total income, including dividends. Once it is exhausted, the £500 dividend allowance taxes the next slice of dividends at 0% — but those dividends still count toward your income-tax bands.

For 2026/27, a common structure is to take a salary up to the Class 1 Primary Threshold (£12,570) and the remainder as dividends. The salary preserves National Insurance credits, the dividends avoid employee and employer NI, and Corporation Tax relief is given on the salary cost. Countify can model this against your specific Corporation Tax position.

No. Dividend tax uses the UK-wide rates and bands; Scottish income-tax rates only apply to non-savings, non-dividend income such as salary and self-employed profit.

Dividend tax above the dividend allowance is settled through Self-Assessment. The balancing payment is due by 31 January following the tax year. If liabilities exceed £1,000, payments on account also apply.